6 companies warned about misleading marketing for small businesses seeking COVID-19 relief loans

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Jan. 28, 2015, photo, shows the Federal Trade Commission building in Washington. (AP Photo/Alex Brandon, File)

WASHINGTON (KNWA/KFTA) — Six companies were sent warning letters about misleading small businesses looking for Small Business Administration loans due to COVID-19.

The Federal Trade Commission (FTC) and U.S. Small Business Administration (SBA) sent the letter on Wednesday, June 24.

The FTC/SBA said the companies sent letters that made it appear it was SBA affiliated, “or that that consumers can apply on their websites for loans through the Paycheck Protection Program (PPP) or other programs authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act,” according to the statement.

THE SIX COMPANIES THAT WERE SENT LETTERS

  • Taycor Financial, warns the company about claims on the website disasterloanassistance.com, which include using the official logo of the SBA, claiming to offer “COVID-19 SBA Loan Programs,” and inviting consumers to “Quick Apply.” California based.
  • SBADisasterLoan.org warns the company about its claims to operate from the SBA’s address in Washington and to offer “SBA Lending experts” and “SBA Loan Officers” to small businesses.
  • California-based Small Business Advocates – Los Angeles, doing business as SBA Los Angeles, warns the company about its repeated uses of the terms “SBA Los Angeles” and “SBA LA” on its website and social media, as well as its claim to offer “SBA Loans.”
  • New York-based Madison Funding Partners, Inc. warns the company about claims that consumers could “Apply for the PPP Loan now” and “Get matched with a PPP lender now!”
  • Florida-based NYMBUS, Inc. warns the company about claims that its program “is able to process your SBA Paycheck Protection Loan faster than any other source” and that consumers can “Apply Now” on the company’s site.
  • New York-based USAFunding.com warns the company about claims that describe the PPP loan program and “encourage anyone interested to apply immediately,” inviting consumers to “APPLY NOW.”

The companies were told to take immediate action and remove the “deceptive claims” and have to notify the FTC within two days of making the change.

This is the second time warning letters have been sent by the FTC and SBA to companies about possible misleading consumers. The first time was in May.

Copyright 2020 Nexstar Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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